Study on Institutional Building 21st Aug Society for Elimination of Rural Poverty (SERP) Hyderabad May – June 2006

Structure of Presentation Scope of the Study The TWIN-IB Strategy Methodology of the Study Observation and Analysis Quality of the Institution Sustainability Impact

Scope of the Study Overall objective To assess the quality, sustainability and impact of the institution building processes adopted by the project.

Scope of the Study Assumptions for validation Adoption of an intensive process oriented approach to IB has significantly contributed to sustainable institutions of the poor. Sustainable institutions of the poor had significant impact on the QOL of the Poor.

Twin – IB Strategy : Intensive and Moderate Intensive CRPs from SAPAP mandals Support from APMAS Exclusive Institutions (Chenchus) and CRPs support Moderate General IB strategy

Methodology of the Study Identification of Indicators Two day workshop Field testing in Ranga Reddy Quality of Institutions Rating tools – SHG, VO and MS Sustainability Financial Non-financial including management Impact Quality of Life (7) Perceived Benefits – Financial and Non-financial Perceived changes in Informal Institutions. A.

Methodology B. Methods and Tools S. No. Levels of Data CollectionMethodTool 1Members of Sample SHGsInterview to assess Impact Interview schedule 2Institutions (SHGs, VO, MMS & ZMS) Interview FGDRating Tools 3Project District Functionaries Semi-Structured Interviews (SSIs) Secondary Data FGD Guide Interview Guide Secondary data Analysis 4Stake Holder (Line departments, bankers, non-poor, etc.) Stakeholder analysisSA Guide

Methodology ParticularsSample per DistrictTotal District 1113 Mandals ( 2 per District) 2226 Village Organization per Mandal) SHGs per VO) SHG Members 3per SHGs) C. Sample Size

Methodology D. Criteria for selection of mandals Essential indicators: Age of the Mandal Samakhya Inputs provided by the project for the institution building process (intensive& moderate) Minimum 75% of entitlement of CIF released and having at least 90% recovery Desirable indicators: (apart from the above three any one of the below given indicators) Engagement in activities like procurement, marketing, RCL, health, disability, etc. Mandals that have excellent social capital and supporting other mandals & districts. Mandals that have achieved financial viability (meeting their costs).

Observations and Analysis Quality of the Institutions in Warangal: CRP based approach Vs moderate approach 1.SHGs: Mandal Name“A” Grade “B” Grade “C” Grade Intensive: Geesukonda 78%22%0% Moderate: Lingala Ghanapur 33%56%11%

Observations and Analysis Quality of the Institutions in Warangal: CRP based approach Vs moderate approach 2.VOs: Mandal Name“A” Grade “B” Grade “C” Grade Intensive: Geesukonda 34%66%0% Moderate: Lingala Ghanapur 0%66%34%

Observations and Analysis Future IB strategy has to give more focus on strengthening of VOs both in intensive and moderate models 3.MSs: Geesukonda (Intensive) – “A” Grade Lingalaghanapur (Moderate)- “B” Grade

Sustainability Financial Introduction of AWFP, MCP and Repayment plan facilitate sustainability All Structures viz., SHGs, VOs and MSs are moving towards sustainability and both operational and financial self-sufficiency can be achieved in two years time One third of the MSs & about 50% of the VOs are in a position to meet 50% of their monthly office expenses

Sustainability Non-Financial Meeting place :MSs and SHGs better placed than VOs. Book-keeping, Financial Management, Administrative Systems, member participation and complying Legal compliances provide scope for improvement Linkages with Banks, Line departments and participation in government programs contribute to sustainability of institutions. Enhanced focus would go a long way.

Contributing factors for quality & sustainability of Institutions Focused and systematic approach to IB Experiential and cross learning through CRP strategy Bottom –up approach for IB Strengthening Effective methods adopted for problem solving and conflict resolution Having weekly meetings Intensive member education by CRPs and exposure visits influenced the performance of SHGs and VOs Adoption of entitlement approach and 7 step MCP process for lending Timely provision of credit

Contributing factors for quality & sustainability of Institutions Staying in the villages and doing home visits Intensive monitoring and continuous follow-up by staff (mandal, district and state) Promotion of Strong Social capital Concept of Sub-committees influencing the quality of performance of SHGs and VOs Presence of SHG and VO bookkeeper is enhancing the performance of SHGs and VOs SHG, VO masanivedikalu and DCB Targeted approach to coverage of POP & Poor and in giving benefits

Impact on Quality of Life Perceived changes after joining in SHGs: Increased house hold income and enhanced physical well being in 70% of HHs 47% of members started getting income from diversified income sources 82% of members acquired assets after joining SHGs A positive change has come both in quantity and quality of food consumption in 75% of members HHs and better clothing in 81% of members HHs 51% members reported improvement in overall health status (Institutional deliveries, childrens immunization and change in treatment seeking behaviour)

Impact on Quality of Life Perceived changes after joining in SHGs: Significant improvement in children education especially girls education ( 82%) Significant improvement (85%) in members knowledge and skills (group management, leadership development, bookkeeping, financial management, on various social, economic and political issues) 68% members felt that SHGs is acting as a safety net to tide over their difficulties SHGs have significantly impacted child labour issues ( 56%) Violence against women has diminished SHGs are also emerging as strong power groups

Way forward More focus on member managed and controlled approach (administrative, financial and human resource management, MVTC management and in service delivery) Adoption of CRP strategy in phased manner and creating demonstration sites for replication More focus on promotion of operational (meeting office and staff expenses) and financial self-sufficiency in CBOs

Way forward More focus on registration of CBOs, complying legal compliances and enhancing financial management and accounting skills of members Strengthening of ZS and TTDCs Establishment of Area Coordinators system under the overall guidance and control of ZS Convergence with line departments, financial and non-financial agencies